News Straddling Strategy (Part I)

By Ahmad Hassam

Major short term currency moves are almost always preceded by changes in fundamental views influenced by the news. Traders around the world make a living by processing and translating information into money. The forex market is extremely sensitive to the flow of news related to it.

We live in the information age. It is an era where information can be an extremely powerful strategic asset. Information equals money especially to a trader. Shutting yourself off to the news can be suicidal. Timely information is vital to an individual or a corporation.

The speed of the news dissemination is very important to traders. If you receive the news after some delay, it is almost of no use to you. Others have already taken advantage of it. Traders especially the day traders require the latest up to the second news updates. Latest news facilitates their trading decisions which have to be made at the lightening speed. A 15 minutes delay in receiving the news can mean losing the trade.

Many opt for instant online news services such as the Dow Jones Newswires, Bloomberg and Reuters which display the latest financial and economic news on their computer monitors.

News is important to forex trading. Each new piece of information can potentially alter the traders perception of the current or future situation relating to the outlook of certain currency pairs.

Socio-political events that are happening around the world like in Middle East and North Korea also tend to affect the forex market in major ways. News that is of great importance to forex traders is generally related to a countrys economic, monetary and political situations.

It is expected that other traders see and interpret the same news in a similar fashion and adopt the same directional bias. A traders action is based on the expectation that there will be follow through in prices. These traders will be preparing to cover their existing positions or initiate new positions based on this news. It is all based on your perceptions. Sometimes you can wrong too! Market may not react the way that you had anticipated.

News is a very important catalyst of short term price movements because of the expected impact it has on other market players. This is in a way an anticipatory reaction on the part of the trader as he or she assumes that the other traders will be affected by the news as well.

If the news happens to be bullish for the USD, traders who reacts the fastest will be the first to buy USD followed soon by other traders. Other traders may be slower. They maybe were waiting for some technical criteria to be met before they jump on the bandwagon.

When they get hold of the delayed news in the morning newspapers or from their brokers, there will be many who will join in the frenzy at a later stage. This progressive entry of the US Dollar bulls over time is what sustains the upward move of USD against another currency.

Almost the reverse will happen on the surprise bearish US Dollar news. Traders who get the news first will start selling US Dollar instantly on the assumption that when other traders will hear the news, they will also start selling. A downtrend develops. Other traders join soon. The downtrend becomes strong. Forex market is constantly in the throws of news driven volatility. - 23309

About the Author:

Mr. Ahmad Hassam is a Harvard University Graduate. He is interested in day trading stocks and currencies. Try Netpicks Forex Signals Free. Learn Forex Trading!

How To Buy Stocks

By Mike Swanson

It's a no brainer that there is money to be made investing in stocks. But then it is just as likely you can lose money. The key is to pick stocks that will perform as you want. There are three terms that you may not have heard of and why they are important to you.

DEAD CAT BOUNCE: This is the temporary recovery of a stock price during a general downward trend. Often it is caused by rumor or market talk ups. People believe the stock has reached its lowest price and begin buying. The dead cat bounce effect means the price will drop again and they are likely to lose money.

What does it mean for me for stock trading? Because no one can predict when a decline will reverse don't rush in. But it may provide you a window to make trading gains while the stock is in this pattern.

A BELLWETHER STOCK: This is a predictive stock, one that usually indicates where the market is going to head.

What does this mean for me? These types of stocks may not be attractive purchases in their own right; there may be little chance of growth realization. But they are stocks to watch when predicting where the market will go next. The biggest investors in these stocks tend to be the big institutional investors.

THE JANUARY EFFECT: It has been recognized that at the beginning of a new calendar year prices tend to increase across the month of January. There can be many reasons for this but often the big two are taxes and investor psychology.

Why is this important? It has been shown in investigations that the January effect is real. However in recent years it has become more difficult to take advantage of. So it may be useful to watch for, but it is unlikely to be a reliable way to make money. - 23309

About the Author:

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Deciding On Property Management Fees

By Layla Vanderbilt

When a property investor decides to hire a management company to manage their properties, they interview many companies before they decide whom to hire. Among the things they compare are the real estate management fees the company charges. The investor must decide whether they want to pay monthly percentages or flat fees for the management company?s services.

Investors should investigate more than just the monetary values of the monthly fee or percentage they would pay. Often a higher percentage of profits also comes with more services for the money, and the cheaper monthly flat fee may not include some of the extra fees that may be charged. For example, is advertising included in the monthly fee? Does the company charge extra each time they show the apartment to a new client? Are leasing fees included with their management fees or are they on top of the management fees? Do they charge extra if they have to evict a tenant? Do they charge extra when they prepare the units for rent? What is the typical cleaning fee when they clean vacant apartments? An investor should read their contract carefully to see what services the property management company includes in their fees.

A property management company charges a real estate management fee based on the percentaage of income collected with a monthly base fee. A fee will vary according to the type and size of the property; for example, a fee for a single family home could be a flat rate while a large property might cost 6 percent of its value. Larger properties usually command a lower percentage rate (i.e., 2 percent) than a single family home that may be quoted up to10 percent. One negotiates fees on a per property basis and one considers many factors including condition, location and size of the property, etc. Management companies consider leasing to be an auxiliary service; it and other auxiliary service fees are separate and in addition to the management fee. The contract also needs to explain how and when the fee is collected. Do they bill the investor or do they deduct it from his account? Do they bill on a monthly or quarterly basis?

Another important consideration in choosing a property management company is payment. Some companies deduct their fee directly from the income your property generates, while others send a monthly or quarterly bill. Other fees a company may charge are for cleaning and preparing rental properties, or eviction fees. Be sure to take the time to discover and consider all fees charged by the property management company.

Besides the renting of property and collecting of rents, the management company performs many other services. Accounting services including preparation of monthly statements, the hiring of contractors for cleaning services, groundskeeping, and maintenance, and the supervision of these crews are some of the services provided by the property management company. The proper execution of these services by the management company provides peace of mind for the property investor. After determining the services provided and fees charged, the investor should investigate potential management companies' references. The management company that provides the needed services for the fee within the investor's budget and that has the best references is most likely to be the best company for the investor to choose to manage the property.

Interviewing the management company to determine the real estate management fee they charge is only the first step to hiring a reliable company. Many things outside the monthly fee determine the final cost an investor sill pay the management company. How well the company communicates with the investor and tenants, how they handle problems, their attention to detail in the leasing process and their ability to maintain the property in good condition all determine an investor?s final costs on each property.

Certainly there are other factors for you to consider outside of the fee that will be charged. For example, reliable and quick handling of maintenance issues to prevent major expenses. A property management company should be able to rent out your property faster than you alone due to the fact that they are working in the business every day. - 23309

About the Author:

Layla Vanderbilt is the webmaster for a leading property management software review website which connects people with the leading property management tools.

How to Spot Hot Penny Stock Pick Scams

By Malcolm Torren

There is always that two-sides-of-the-coin analogy. The good and the bad, the great and the minute, the black and white, whatever opposing terms you can think of, it's almost in every thing that we see or do. Your investment in the penny stock market must follow this rule too. If you receive a phone call that engages you to buy a hot penny stock pick of the day, you have a choice of whether to be skeptical of embrace the offer. It's your choice.

Another technique of luring you into investing is through flooding your email with offers. They are most often well designed with words that can be very persuasive. Phrases like hot penny stocks, best penny stocks, hot penny stock pick - and the list goes on, are often used. If you don't know much about the trade, there's a higher chance of you embracing for the deal. If you know too well from legit experience, you know this is another one of those misleading offers.

How do you tell if it's a scam? Consequently, the next question is what can you do with it? To answer the first question, read some of the common symptoms below:

- High returns or guaranteed success is one thing to watch out for. How else can they convince you? If a website or an email says this penny stock is the real thing, beware. If you read a line that claims that the method used is a tested and proven strategy, beware. That is all it is, a strategy. Seemingly flawless guarantees like these can get you in trouble fast. Beware.

- Penny stock scams are usually offered hastily and are in very cheap prices They lure you into falling for the trap by declaring cheap stocks that are assumed you can afford. Then they tell you to buy them the soonest time possible. Read closely on their message. Hot penny stock pick offers are good but only if you trust the person offering it. The funny thing is you never knew these people or never heard of their names. Isn't this fishy enough? Beware.

- Don't believe their claims of success stories of existing companies which started out with their offers. If you happen to come across claims of how today's huge companies started out with penny stock shares, don't fall for this trap. This approach of fraud is often used and in fact overused. Beware.

So now that you know a bit about how fraudsters work, what can you do about? It's very simple. Don't be gullible. Verify the authenticity. Check their records. Ask for it if you can then have it checked with your stock broker. Make sure these people have a legitimate state and federal license to do business with you. The hot penny stock pick strategy is one of their favorite conduits. Always double check on the companies that they are claiming if it's registered.

You alone can make the decision. Before you embrace an offer, make sure it's not something that's too good to be true. Case in point in the penny stock market business, success doesn't happen in a silver platter. So the next time you get a hot penny stock pick offer, just say heads or tails? It's your pick - but beware. - 23309

About the Author:

Can you spot a hot penny stock pick scam? Find out about the secrets of the hot penny stock trade!

BlackHorse Fund: NOT approved by grandma

By BlackHorse Management

July 28, 2009, Los Angeles California " Keeping money under the mattress is probably the riskiest investment grandmothers make. For them, BlackHorse Fund represents an aggressive and even alien group that serves no purpose.

There are many kinds of investments out there " some are safe and suitable for grandma while others are far more aggressive and serve a very different purpose altogether.

For grandmothers everywhere, BlackHorse Fund stands as a strange, complex entity. This private forex fund has the primary goal of growing the capital of its investors and it does so with a talented team and a proprietary algorithm.

BlackHorse Fund operates in the forex market " the largest and most liquid market in the world. The forex market is the currency market where investors make thousands and even millions by trading one currency against another. It would shock grandma to learn that trillions of dollars change hands each day in this market. She probably remembers when houses sold for hundreds of dollars in a catalogue.

Risk is a four letter word for grandma. She avoids it except for the risk she takes when she decides to put raspberry jam on her toast in the morning. Knowing that risk can be managed by seasoned investors with years of experience won't make her feel any better.

Seasoned experts and a proprietary algorithm are the secrets behind BlackHorse Fund's success and dramatic rewards. Grandma may not understand or appreciate it but the private investors know that the combination of experience and algorithm holds a proven success record.

BlackHorse Fund is a private fund, inviting members in after a lengthy and rigorous application process in which the investor's trading preferences are carefully weighed against the fund's goals. Grandma wouldn't appreciate what that means but the investors do: A small group of investors means that the fund is far more agile to make the right decisions when necessary. Currently, there are a limited number of seats open in the fund and BlackHorse is examining current applications for suitability. Grandma has definitely not applied. - 23309

About the Author:

Send additional information and general questions, sendthem to the BlackHorse Management Team at info@blackhorsefund.com.